LETTER TO MR. JOSEPH F. MALAGA FROM JAMES H. MCDONALD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00142R000300090007-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 23
• Document Creation Date: December 14, 2016
• Document Release Date: October 4, 2002
• Sequence Number: 7
• Publication Date: July 1, 1978
• Content Type: LETTER

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LLA
Mr. Joseph F. Malaga
Executive Director
{A Regis
file
Administrative Services Reorganization Project
Washington, D. C. 20405
Dear Mr. Malaga:
Your letter dated 1S June 1978 with regard to TransmI t i
of Draft Reports - Administrative Services Reorganization
Project has been referred to this office for reoly.
Our continents are keyed to the isst es and are as folio,:!
Issue No. S-1: Design Conca?I t fora National
Supply System -tee see no obiectiun to the establish-
ment of a National Supply System'(NSS) if, in the
final analysis, it provides the scrviceto the custornci
in a timely manner.
Issue to. S-2: Criteria for Consolidation of
Depots - see no objection to tie consolidation of
Government wholesale supply depots if it provides
service to the customers in a ti?:uly and cost effec-
tive manner. 'Yh.ile the subject of consolidating depot
seems to be an area where substa-itial savings can be
realized, a more in depth study is required.
Issue No. S-3: FSS Supply {),eraticros - We agree
with 'tlie recommendations concernsx?e industrial fund-
in-.
Issue No. S-4: Customer Son-ices We strongly
support-` oncusTo-ns/Reccmmendatir.s 0 through 10.
These would provide us with more flexibility in sup-
ply/procurement operations.
Issue '1o. S-5: Vent.ors and the FS9 Procurement
Process We concur with any efforts designed to, and
effective in, the lessening of t- comps xities cur-
rently inherent in Government contracts. Any effort
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Mr. Joseph F. Malaga Page 2
expended in this respect is costly to the potential
contractor who ultimately passes such oasts on to the
Government. Thais, of course, 13 inflationary in
nature. Therefore, we concur wit? OFPP's efforts to
simplify procedures and regulaticas invrlved with
Government contracting. A step lei this direction
could be the simplification of re ulations, contract
forms, and the use of more easily understood contract
language, particularly in contracts not in excess of
certain dollar limitations, i.e., the $25,000 thresh-
old mentioned in tne S-5 summary.
Issue 1o. 5-6: Personal Pro)erty Utilization -
We have no prob~`em with the General Services Adminis-
tration (GSA) assuming a Government-wide role for
excess property sales.
Issue No. S-7: Printing Services ? We feel that
little wouI`ctd'V gained by the establishment of an
Executive Branch committee with the same authority as
the Joint Committee on Printing, assuming that Congress
would agree by revising Title 44. We do not believe
that the savings and improvements cited would, ipso
facto, flow from such a move. It is apparent that th3
reestablishment of the Interdepartmental Committee on
Printing and Processing, without changes in Title 44,
would only add yet another layer of bureaucracy.
Issue No. S-8: Strategic anc Critical Materials
Stockp i'e-,i4-e-have no comment.
Issue No. S-9: Public Utilities Management - Mas=t
domestic utll ty services are prokided to the Agency as
part of the GSA Standard Level Us*r Charge (SLUC) svsref
wherein we pay a unit rate for space, including util-
ities. There are exceptions, however, ahd utilities
for Agency spaco located on military compounds or not
otherwise subject to the SLUC system are paid for under
the interagency support agreements or directly by the
Agency. These latter instances aro few, so, for the
most part, the Agency is subject ti GSA utility policies
and procedures through the SLUC sy-,tem.
Per the report, GSA accounts for only 25 percent
of Government purchased utility services while the rears
ing 75 percent represents usage by the military and of:l,-,
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Mr. Joseph F. Malaga Page 3
civilian agencios. Ne believe that the present decen-
tralized system. in which the military and any civilian
agencies have independent authorities to arrange for
utility services based o their oWnn unique needs, is
better than the pro-4-osed centralized system under which
GSA, having 25 percent or less of the total requirement,
would establish policies and procedures for all Federal
agencies.
Issue No. '5-10
have no co iii ent .
Cooperative upport Services -
Issue No. ;r -11 Motor Vehicl:, Mvlanape13ent - e
agree t at the reduction in replacement cycle time for
vehicles fronti six years to three years will be cost
effective in the long run.
Issue No. 3-12: Transportations and Traffic Manage-
ment - C~ tai `iur alternative recommendations for
transportation services, we would recommend the adontior
of Alternative A since the services and expertise of CS".
would become more available to the Agency. Alternatives
B and C are considered impractical with no changes of
adoption. E5/e endorse an increase in FO.B origin con-
tracting, since this would permit the application of
traffic management expertise in the procbrement cycle
and result in transportation cost savings.
We are pleased to have the opportunity tc comment on this
excellent draft study.
'`inc-rely,
cc: ER
.FDA
Janes 1. McDonald
Airector of Logistics
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Reorganization
Project
Administrative Services Reorganization Project
GS Building
18th & F Sts. NW
Washington, DC 20405
SUBJECT: Transmittal of Draft Reports - Administrative
Services Reorganization Project
Enclosed is the last of four draft t.:sk force reports of th
Administrative Services Reorganization Project -- Supply and
Support Services.
235-2420.
Please review the enclosed draft and give us your written
comments by July 7, 1978. Comments should be sent to the
Executive Director, Administrative Services Reorganization
Project (XS), GS Building, 18th and -' Streets, NW,
Washington; DC 20405. If you have questions or would
like additional information, please -,ontact the Supply and
Support Services Task Force Leader, .'fir. David Phillips, at
osepn r?. rnalaga
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2 1 JUN 197?
Mr. Joseph F. Malaga, Executive Director
Administrative Services Reorganization Projtct (XR)
GS Building
18th and F Streets, M.W.
Washington, D.C. 20405
Dear Mr. Malaya:
We have reviewed the draft report of tte Archives and Records
Task Force enclosed with your 6 June 1978 memoranduisi. The report
is well balanced, and the findings and alternatives are pertinent.
We have no specific changes to suggest, but we would like to make
a few general co-rtents.
In general, we favor the alternatives teat recommend continued
placement of the archives and record function in NARS as an element
of GSA. It would be counterproductive either to split the function
or to relocate it in whole or in part. It night be helpful to give
MARS more general autonomy within GSA, but the main need is for
appropriate staffing and funding to enable =GARS to perform a more
positive role. In this role, we favor the alternatives that provide
for enhanced MARS standards, guidelines, toning, and evaluations
of agency programs. We do not favor the al t.ernati ves that recomen
central direction and control. Program implementation is best
accomplished through cooperation between federal agencies and NARS,
with the option that MRS report serious coripl iance problems to 3!18
or Congress.
Regarding the proposals to make the General Records Schedules
mandatory and to reduce the period for transfer of records to MARS
from 50 to 30 years, we note that two Acts recently passed by the
Senate successfully incorporate these provisions.
in reference to our own records management pro ram and
participation in interagency programs relating to tiro major areas
of concern mentioned in the report: We are not one of the 85 agencies
that have not met the requirements to schedi:le records, and we do not
contribute to the federal paperwork burden cn the public. However,
in fulfillment of BARS government-wide program responsibilities,
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we are willing to participate in inspectioq programs, multi-agency
studies, and information clearinghouse operations--to the extent
that these activities are focused on produ?--tive goals and provision
is made for our responsibility to protect intelligence sources and
methods information.
Si ncer ply,
!9J Michael S. Malanic?k
John F. Blake
Deputy director
4 r
Administration
Distribution:
Original Ado-ressee
1 k'DDA Sulziect
1 - DDA Chrotro
1 - AI/DDA
1 - C/ISAS
1 - RAB Subject
1 - RAB Chrono
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 President's
Reorganization
Project
Administrath Setvi s Reorganization Project
GS Building
lRm&FSAs.NW
Washington. DC 20405
JUN 15 1978
MEMORANDUM FOR HEADS OF EXECUTIVE AGENCIES AND ESTABLISHMENS
SUBJECT: Transmittal of Draft Reports - Administrative
Services Reorganization Project
Enclosed is the last of four draft task force reports of the
Administrative Services Reorganization Project -- Supply anct
Support Services.
Please review the enclosed draft and give us your written
comments by July 7, 1978. Comments should be sent to the
Executive Director, Administrative Services Reorganization
Project (XS), GS Building, 18th and F Streets, NW,
Washington, DC 20405. If you have questions or would
like additional information, please contact the Supply and
Support Services Task Force Leader, Mr. David Phillips, at
235-2420.
~ -7
00/7
caseph F. Malaga
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 ? 'Presiden?" ARLq~gfb03/04/17 : CIA-RDP81-0014
Project
Administrative Services Reorganization Project
GS Building
18th & F Sts. NW
Washington, DC 20405
June 6, 1978
SUBJECT: Transmittal of Draft Repcrts - Administrative
I Services Reorganization Project
Enclosed is the draft report of the Archives and Records
Task Force, Administrative Services Reorganization Project:
The fourth and final report scheduled for release by
June 15 -- Supply and Support Services -- will be sent
to you shortly.
Please review the enclosed draft on archives and records
and give us your written comments by June 23, 1978. Commert.,
should be sent to the Executive Director, Administrative
Services Reorganization Project (XR), GS Building,
18th & F Streets, NW, Washington, EC 20405. If you
have questions or would like additional information, please
contact the Archives and Records Task Force Leader,
Mr. Ed Johnson, at 235-2420.
Sincerely,
//Executive Director
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Executive Office of the President - Office of Manacement and Budget
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r I.,
r. Joseph F. Malaga, Executive t)irectoi
Administrative Services Reorganization Iroject
Office of Management and Budget
Washington, U.C. 20405
Dear Mr. Malaga:
The opportiunity to comment on the craft of the `;AdministTn-
tive Services Reorganization Project, tt al Property Task Fore--
Findings and Alternatives," as is the st}bmittai extension tc
14 June, granted by Mr. Inglefee of your staff, is appreciate..
Because of the scope of the recommendat ons contained in the
study, detailed comments on each of the alternatives are prfv-
vided in an enclosure to this letter. It is considered, how?er,
that the following overview should be p esente..i to express
Central Intelligence Agency's (CIA) position with regard to
proposals made.
CIA's interpretation of the totality of tiie Task Force
draft is that there is a definite thrust toward centralizati=~-a
of policy, regulations, standards, and txecutjon of all Fed:> l
real property activities. CIA concurs .n centralized policy m~,
regulation as is now being done by the office of Federal Pr1'X.:ru:-
ment Policy (OFPP) with regard to standtLrdized Federal regul ticrz
for procurement. (It is noted that OPP), has recently circu z. t F.e;
a study by the Federal Construction Cowccil on procurement wj..c J?
for construction; it is presumed that this study is being con-
sidered as a part of the Task Force fiituuings.) CIA believes,
however, that OFPP, or some other regulatory entity, should
promulgate centralized policy and regulations as opposed to
selection of any agency that is also re,ponsimie for implemiu: -
tion and compliance. CIA is less enthusiastic about contra. -zn. 1.?
of standards and procedures for real property activities
agencies, CIA included, have developed -~peciax expertise in vc:a.i
property in order to meet their unique -y: equirem.ents . i?hc~ pry t;.1 r t,
approach from our viewpoint would be standardized policy wig
leeway for each agency with real properly capability to ? sta< .i + 1
its own implementing procedures and sta-.idlards.
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Mr. Joseph F. Malaga
With regard to revision of restrictive ceilings on real
property activities as imposed by legislation or regulatory
issuance, CIA is, as delineated in tht attachment, definitely
in favor of increased ceilings. It is recoil ended, however,
that consideration be given to inclusion of provision for
automatic, future upward adjustments tased oat accepted
statistical indicators of inflation.
With regard to delegation of aut orities to agencies
with existing real property capabilities, CIA endorses
delegation to the maximum extent.
should again, be noted that CIA, by virtue of its
enabling legislation plus a specific exemption in the Feuerv.L
Property and Administrative Services /'ct of 1949, is authoriz!I
to perform its own real property-related activities in
support of unique, operational requirrraents.
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In summary, CIA:
- Supports a central policy arl regulation for
real property activities, but believes promulgation
should rest in a nonexecuting entity such as OFPP.
- Recommends that implementing standards and
procedures of Federal regulations and policy be
left to those individual agencies o have a real
property capability.
- Recommends against centralizi=tion o all
Federal real property activities in any one single
entity.
- :endorses raising of restrict? ve monetary
ceilings on real property activitie:
- Endorses maximum delegation -..o qualified
agencies, and
STATINTL - Restates its authority to act_ independently
where its unique, operational requL-ements are impacted.
I executive Offi-er, Office of Logist< .s
11,41 L remains CIA-1 action officer for tlis project and
should be contacted if specific data is required. Should
broader policy questions arise, however, please contact me
directly.
john f Make
Deputy L; irector
gor
Adr.inist ration
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25X1A
Distribution:
Original - Addressee, w/enc.
1 - ER, w/enc.
2 - DDA, w/ enc .
1 - OL/RECD Official, w/enc.
Originating Office:
Director of Logistics
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ISSUE I -- CENTRALIZATION/DNCENTRALIZATION
IA - Leasing
Alternative 2, which gives GSA total authority to regulate
all leasing services and authority to execute or delegate these
services, is endorsed as it provides the most flexibility of the
two alternatives presented. Adoption of either alternative would
not inhibit CIA's statutory authority to acquire real property
when such acquisition is determined to he in the National
interest.
IB - Construction
Alternative 3, which vests in GSA total authority to
regulate new construction, repair, and alteration services
but allows agencies the latitude of constructing of nonoffice
type space and office type space on agency installations, is
preferred over Alternatives 1 and 2. As noted in the overvie,,r
letter, CIA does not recommend vesting total construction in
single entity. '
IC - Building Operations
Alternative 2 which gives GSA to'.al authority to regulate
building operations and authority to execute or delegate the
execution of those services is favored over Alternative 1. 'Ili!
Agency, however, would continue to be exempt from certain report-
ing requirements (employee names, personnel strengths, functions,
etc.) and continue to insist upon the use of certain security
measures such as clearance or escort of GSA/contractor personnel-
ID - Disposal
The (only) alternative, to vest in GSA total authority to
regulate and execute or delegate the execution of utilization
and disposal of real property, is an example of overcentraliza-
tion. Adoption of this alternative would, in effect, give GSA
regulatory authority over itself as the executing agency.
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ISSUE II - FIXED LIMITATIONS
IIA - Leasing
The alternative to change the Economy Act of 1932's
threshold from $2,000 to 5,000 square feet and allow a
deduction for real estate taxes in computing the 15%
limitation on fair market value is endorsed.
The alternative to change E.O. 11512 to vest final
authority in GSA to resolve space assignment disagreements is
opposed. A system without an appeal mechanism is considered
inadvisable. Certainly, as the principal staff agency
involved, GSA's recommendations should be given great weight,
but it is believed that authority to resolve issues of
space needs should reside in a nonexecuting agency.
The alternative to allow GSA to pay for options to
acquire interests in real property is viewed as a proper
function and one which would facilitate acquisition.
The proposal to authorize GSA to convey an interest in
Government-owned land for lease construction (lease back)
projects could, on a case-by-case basis, prove beneficial
to the Government and is, therefore, recommended for adoption.
Adoption of the alternative calling for revision of the
prospectus criteria from $500,000 to 125,000 square feet should
receive strong support. There is no doubt that the Congress
needs, and would want, to retain some control of leasing
activities, but the current criteria are grossly consumptive
of time and an impediment to efficient operation of the real
property function.
IIB - Construction
Alternative 1, to revise the statutory limit to permit
A-E fees up to 9% on all renovation, remodeling or rehabilitation
projects; to keep the 6% limit on new construction; and to elimi-
nate the audit requirement for fees exceeding $100,000 is a sound
proposal, the adoption of which is endorsed by this Agency.
Revision of the Davis-Bacon Act by raising the threshold
to $40,000 is appropriate. It should be noted that the Federal
Construction Council and the Commission on Government Procurement
have, in their most recent review of the problem, recommended a
threshold of $25,000. Any new legislation which establishes
minimum or maximum dollar amounts should also contain an
escalator clause tied to the CPI which would alleviate at
least one of the problems currently confronted by the executing
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The identical rationale would apply to amendment of the
Miller Act (from $2,000 to $40,000) for payment and construction
bonds on Federal construction projects.
Revision of the Public Buildings Act of 1959 to raise
the threshold amount from $500,000 for new construction and
repair and alteration projects to $2,500,000 (again with some
type of escalator clause) is long overdue and would be strongty
endorsed by this Agency.
IIC - Building Operations
Amendment of the Federal Property and Services Act (FPASP
to allow GSA to contract selectively for building operations
for periods up to three years is definitely in the best inter_ssts
of the Government.
The proposal to change the current requirement for deterTin-
ing individual wage rates by publishing such rates on a geo-
graphical basis and keeping them in effect until superseded i
favored as a method for increasing efficiency and eliminating
untimely delays.
Allowing GSA to effect the direct hire of temporary emp)liyees
to meet workload fluctuations is deemed in the best interests of
the Government.
III) - Disposal
The alternative to amend Section 3(e) of the FPAS to vest in
GSA final authority for the determination of excess real pr(.)p~_,rty
is not viewed favorably. It is agreed that an authority, sic-i as
the now defunct Federal Property Council, is required but
again, it is recommended against vesting regulatory authority
in an implementing agency.
Alternative 1, amendment of Section 204 of the FPAS to
allow funding of real property utilization and disposal activities,
is.viewed as a viable alternative to the current situation.
Amending Section 204 of the FPAS to authorize the reimburse-
ment to any Federal agency of the net proceeds of sale from its
real property is an attractive proposal. However, one caveat
should be placed on this proposal--it should not be adopted ii_
that same agency receives total authority for the disposal of
real property.
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ISSUE III - FUNDING MECHANISMS
Alternative 1, that of establishing the Federal Building
Fund (FBF) as a true revolving fund, is the most favored of
those presented. Especially significant is the capability
such a fund would have to reprogram monies collected and
abolishment of the requirement to return funds to the
Treasury as miscellaneous receipts. Once this type of FBF
has a chance to operate, it is believed that many of the
delays in service currently being felt will disappear.
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POW
Reorganization
Project
Administrative Services Reorganization Project
GS Building
18th & F Sts. NW
Washington, DC 20405
May 31, 1978
MEMORANDUM FOR HEADS OF EXECUTIVE AGENCIES AND ESTABLISHMENT;;
SUBJECT: Transmittal of Draft Reports -
Administrative Services Reorganization Project.
Enclosed is the second of the draft reports of the Administrative
Services Reorganization Project -- that of the Telecommunic tons
Task Force. As we noted in our May 25 transmittal of the Real
Praperty7Task Force report, additional reports on supply and
support s&rvices, and archives and records will be forthcomira
shortly.
Please review the enclosed draft on telecommunications and
give us your written comments by June 16, 1978. Comments shctiL4
be sent to the Executive Director, Administrative Services
Reorganization Project; GS Building, 18th and F Streets, NW,
Washington, DC 20405. If you have questions or would like
additional information, please contact the Telecommunications
Task Force Leader, Mr. Harold Belcher, at 235-2420.
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Executive Office of the President -ffirP of nanamcnt onrl Ri it a e%+
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Appri rtjCi I
I~
Administrative Services Reorganization Project
GS Building
18th&FSts. NW
Washington, DC 20405
MAY 2 4 1978
DDIA Registry
FUn
TO: Heads of Executive Agencies and Establishments
FROM: Joseph F. Malaga, Executive Director
SUBJECT: Transmittal of Draft Reports - Pdministrative Services
Reorganization Project
Last October 25, we asked for your views on how best to improve the deLiiery
of administrative services within the Federal Government. Since that ti.r.e,
we have conducted an extensive study, and have prepared a series of serve
improvement alternatives related to real property, archives and record,
supply and support services, and teleconnminications. The first of four Task
force reports to be issued in draft over the next several weeks - real
perty - is enclosed. Others will be forwarded within the next 3(1 days. k
fifth report on our overall assessment and organizational alternatives vil1.
be forthcoming after comments on the draf?, task force repotrts have been (-e-
viewed.
Many of the largest departments and agencies have represented the Federal_
interest during the project through the Assistant Secretaries' Managerr.enL
Group and the General Services Advisory Council. It is essentia:t, however-,
that all agencies be given adequate opportunities to review the work cf he
project staff and register their views vis-a-vis the alternatives presented.
Please review the enclosed. draft on real property services and give u:. y,cur
written comments by June:71-11978. Comments should be sent to the Admini-;-_
trative Services Reorganization Project, CS Building, 18th and F Streets.: NW,
Washington, DC 20405.
JosW F. Malaga
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Executive Office of the President Office of Management and Budget
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